we often find some deep pockets and has run the company for many years, have developed from startup. Once I will have so of misunderstanding, think “startup” only those who do not mature technology companies or in a small company is striving on the path to success.
like millet, drops the express, reality and Uber the now world-famous brands also belong to a startup. Only in a certain sense, now they are full-fledged, can acquire. Of course, there must be a way to separate the fledgling “enterprise newly” and continue to occupy the top headlines of well-known companies.
to solve this question, we first need to know what is accurate detailed startup.
a startup company with conventional differences embodied in where?
nowadays, many large companies in the early stage are very small. Although science and technology media always likes to promote entrepreneurial company successful history, but with their own savings to set up the company in the conventional bolt are a small company. So if start small, then the difference is that will focus on profit and profit efficiency?
is well known in the world of the big entrepreneurs, Steve Blank, a university lecturer said: “the difference lies in the initial stage of mind.” Small businesses are typically will focus on the profit as soon as possible, usually the goal is to become the sustainable development of enterprises. For business owners, he hope that the company is his living and career. And on the other hand, startups are more like in a full of unknown experiments, they started to explore a new business model has faster development potential or market outlook.
the key difference is that: when a small business because of its expansion needs, just want to pursue a more meaningful development, the prototype of the startup is formed. Startup trying to create a new market or trying to overthrow the old market, but either way, their purpose is to seek the development of faster. In addition, another key difference is that a small business and startups seek the development strategy of different. Small businesses will raise the emphasis on short-term fiscal revenue to increase yields, while startup accounting to draw a variety of ways to seek development.
one of the ways is purely the user access strategy: the company is usually in the form of advertising to attract users, let these users believe that the company will bring their objective after income, Youtube and Facebook is in this way to success; Another way is to pay more attention to raise revenue without too much attention to profit, Amazon is a typical example.
startup when should get rid of label?
in the game world of startups, there is no established rules, so no one can predict when a startup that can get rid of the label. Here we speak of are some of the criteria has been widely accepted, you can according to these principles to determine the location of a startup current.
there is a clear definition of time
if you are around $twenty million in revenue, your company may have been out of the “testing the waters” stage, and has already on the path to the sustainable development of the enterprise plan step by step forward.
startup of the number of employees is another important basis for judging its stage of development. If the company’s permanent staff between 80 to 100, then the company will no longer belongs to the category of the startup.
startups, of course, there is the length of the is also an important basis. If startups are acquired, or have already issued for an initial public offering on the stock market, then you can formally announced: it is no longer a startup.
development curves of
Y Combinator founders Paul Graham explained: “when the startup at stable stage of the classic S curve suggests that their success from the title of” startup “.”
according to Graham’s point of view, the development of entrepreneurial firms must go through the following three stages:
(1) slow development stage: the startup is at the initial stage of product development.
(2) the stage of rapid development, determine the target market, startup scale processed products to meet market demand.
3. Stable stage of development: the market reached its saturation point, startup reached a certain scale, development speed slow down to a lower level and need to meet the market demand is becoming more and more limited.
the question: how can I know the rapid development phase, steady development stage started? If S curve can be drawn, then each stage is obvious. Speak more detailed point is refers to the growth rate from the top to the lower level continues to decline, means that the growth rate of from 5% to 7% per week each year (Y Combinator Suggestions) down to the final 7% of blue chip type of growth.
products with the matching degree of the market
products and market compatibility refers to the suitability of products for the target market. Once the potential target market product, the product demand requires precise adequately measure to ensure the durability of the business.
products and markets the matching degree can be determined by a variety of ways, can be assessed through enterprise status and operation situation, also can vote to determine by the customer.
you in actual sales all of your stock? You get the user’s speed is faster than the speed of your extension server? How much are you very upset to hire the sales and support staff to meet demand distress? Is it true that those indicators such as Marc Andreessen from well-known venture capital firm Andreessen Horowitz said popular?
is referred to as a market leader and entrepreneur Sean Ellis in a blog post describes another popular method. He suggested that startups to survey the customer and to understand: from the side if no longer provide existing products, the customers will have what idea.
if you have 40% of customers so negative this kind of practice, so once the product is lost, the customers will be very disappointed. Ellis think this case startups have already reached the perfect matching of product and market.
when a startup has become an integral and indispensable part of the user, and continues to challenge the previous size, so the company is already out of the status of startups.
a lot of people think, compared with the actual business category, startup is more a mentality problem, it shows that the company want to mature, it must be from the culture of the startup.
this is returned to the difference between entrepreneurial firms and corporations. Big companies need to consider first their shareholders, but also for their bottom line. This means that large companies can’t be in the long run, the goal of behavior also relatively conservative.
on the other hand, entrepreneurial firms are more “aggressive” space, they can be more free to take risks, to make a living. They don’t need to take care of the big companies to some rules, also need not cater to the set of large corporate bureaucracy.
words being said, we also heard that in some big company internal, some departments also can keep the height of the similar to startup the autonomy and flexibility, Google X is a typical example.
startup and normal company is mostly differ in details, and there is no definite standard can be decided when startup on the right track. Reference site, a net friend’s words: a company is always a startup for founder, but it has successful transformation for entrepreneurs.
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